A HEDGE fund run by two analysts who spotted the downfall of
Campling and Clothier worked together at
The prime suspect for the duo since launching the new hedge fund in May last year is AI, and the massive hype around the technology's much-discussed potential to add trillions in value to the economy.
While the managers acknowledged its benefits, they argued that it often is acting much like "a glorified thesaurus" and the current excitement around it is comparable to the dot-com bubble.
"Is it going to add
"It seems incredibly obvious to us that the popularity of AI has peaked," he added, pointing to declining search trends and "fading" consumer excitement.
However, the market is still "in the grip of AI euphoria", with Nvidia's stock price having risen 23 per cent since the start of the year, so the two were holding off from implementing a full short against it.
Instead, the duo said they planned to create a "short AI" basket of their fund as earnings season approached and firms began to admit that it was tricky to find a way to implement AI to boost their profits.
In another contrarian take, the two have become positive on the
Having endured "ten years of s**t,"
Campling argued that the "ridiculous valuations" of the
(c) 2024 City A.M., source